Artificial intelligence is rapidly changing the insurance fraud landscape, according to Oklahoma Insurance Commissioner Glen Mulready. Citing recent industry research, Mulready said AI-related insurance fraud cases have nearly tripled over the past two years as fraudsters use generative AI to create fake receipts, altered medical records, fabricated property damage photos, deepfake videos, and forged identification documents. The report identifies AI-generated receipts as the most common form of AI-assisted fraud, followed by manipulated medical documents, fabricated damage images, deepfake video evidence, and fake identity documents.
For claims adjusters, the shift is significant because fraudulent evidence is becoming more difficult to detect during routine claim reviews. Documents and images that once contained obvious signs of manipulation can now appear authentic enough to pass an initial visual inspection. That increases the need for stronger verification procedures, closer coordination with special investigation units, and greater reliance on digital forensic tools when questions arise.
Mulready said insurance fraud contributes to more than $308 billion in annual losses, increasing costs across the insurance system and putting upward pressure on premiums. He encouraged policyholders to verify communications that appear to come from insurers, preserve original documentation, avoid editing claim photos, and report suspicious activity. Those recommendations also help reduce unnecessary delays during legitimate claims investigations.
The insurance industry is responding by investing in image forensics, deepfake detection, document authentication technology, and other AI-powered fraud detection systems. As AI continues to improve, carriers face the challenge of identifying increasingly sophisticated fraudulent claims while maintaining efficient service for honest policyholders. The growing use of AI-generated evidence means adjusters should expect verification standards and investigative workflows to continue evolving.
